Floyd Industries stock has a beta of 1.0. The company just paid a dividend of $1.06, and the dividends are expected to grow at 5 %. The expected return of the market is 11%, and Treasury bills are yielding 5.0%. The most recent stock price for Floyd is $70. Calculate the cost of equity using the DDM method. (Report answer in percentage terms and round to 2 decimal places. Do not round intermediate calculations)